Could it be the ghost of Singur returning to haunt Ratan Tata?

Well, that may be a bit premature but it is certainly not good news for Tata Motors.

The farmers in Sanand, the site of the Nano project in Gujarat, have filed a case against the Gujarat government and Tata motors seeking greater compensation for their land.

In October this year, Narendra Modi's government had handed over 1100 acres of land to Tata to relocate its Nano plant.

At that time, Modi had said that the land belonged to the state government that had been acquired in the past for industrial use.

Now the farmers allege that the land in Sanand was forcibly taken from them and they have not been adequately compensated. The Gujarat high court has admitted their petition.

Needless to mention, that a similar protest against land acquisition had forced Tata to move out of Singur in West Bengal.

Yatin Oza, Advocate for Petitioners, said, "The land is undisputedly owned by the farmers. They had given it on lease to the government for 99 years, which are over. We have documents to prove this before the court. We are not coming in the way of the project, but the project cannot proceed unless compensation at the rate of Rs 950 per metre is paid to the farmers."

Although Tata Motors has refused to comment, NDTV learnt from sources in the company land acquisition and allotment is a state subject and the Modi government must clarify it, not Tata since the company did not independently acquire the land.

However, the larger fear is that this case might cause further delays to Tata’s Nano project.

Meanwhile, the Gujarat government has also refused to comment at this stage, saying that the matter is sub-judice.

But clearly this is another twist in what looks like a very jinxed project for Tata Motors.